Silver prices surged to $33 per ounce on Friday, hitting their highest since late October at $33.41, fueled by factors driving gold to record highs. Analysts suggest silver may challenge its 10-year peak of $34.87, though some remain cautious due to the metal’s volatility and its lag behind gold in 2024.
Silver has gained 14% in 2025 after rising 21% in 2024, supported by rising U.S. Comex futures prices amid concerns over a potential U.S. trade war due to proposed import tariffs. The March silver contract increased 3.3% to $33.79. The premium between CME futures and London spot prices has caused market volatility, drawing significant inflows into COMEX-approved warehouses. CME silver stocks surged 22% to 375.8 million ounces since November 24, when President Trump announced tariffs on Mexico and Canada, later delayed until March.
Copper prices also hit a three-month high, supporting silver. Meanwhile, London Bullion Market Association data revealed an 8.6% drop in silver inventories to 23,528 tons in January, the largest monthly decline since 2016.
Despite bullish trends, analysts caution against silver's volatility, noting its price movements often exceed gold’s by 2-2.5 times. Technical concerns arise as silver traded between $22-35 in 2024 compared to $19-27 in 2023. Industrial demand, comprising half of silver’s usage, could face challenges if a trade war hampers global growth. Additionally, fewer U.S. Federal Reserve rate cuts and slowing Chinese growth may pressure silver prices further.
The silver market's volatility and external economic factors will likely continue to influence its trajectory, with investors closely watching its attempt to reach the $35 threshold.


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